Archive for January 20th, 2010


Expat taxes – Ukraine

January 20, 2010

It appears that the Ukrainian Tax Authorities are becoming significantly more aggressive in respect of the tax rate that should apply to the local employment income of expatriates in Ukraine.

As we have reported in earlier Flash Reports, since mid 2009 a number of individual tax offices have applied the 30% tax rate to the locally paid salaries of expats, unless (and until) the expats have provided their certificate of Ukrainian tax residency to their employers.

This has now become the official view of the State Tax Administration. If the certificate is not available and the employer withholds only 15%, the authorities will apply the additional 15% plus 200% penalties. It is likely this will impact all entities in Ukraine that employ expats and the authorities are likely to assess the additional liabilities for the past three years at least.

The situation is not as straight forward as the authorities imply – PwC does not agree with this interpretation of the legislation. We recommend all employers consider planned actions on a case by case basis for each expatriate employee. This should be undertaken prior to payment of the January 2010 salaries.

For 2010 the best course of action would be for all expatriate employees to obtain their “Tax Resident Certificates” prior to payment of January salaries (if that is possible).

This flash report is produced by PricewaterhouseCoopers’ tax and legal services department.


New Russian Ambassador to Ukraine begins work……not only as Ambassador!

January 20, 2010

Today at 16:18 | Interfax-Ukraine Moscow, January 19 (Interfax) – Russian President Dmitry Medvedev has instructed Mikhail Zurabov who was earlier appointed ambassador to Ukraine, to start performing his duties and invested him with a mandate of presidential representative for the development of trade and economic relations with that country.

“The first round of [presidential] elections was held in Ukraine the day before yesterday. I hope that, after the tabulation of the voting results in Ukraine is completed, Ukraine will have an efficient government seeking to develop constructive, friendly, and comprehensive relations with the Russian Federation. I believe your should start performing your duties as ambassador to Ukraine and try to make as much contribution as possible to the strengthening of friendly relations between our countries,” Medvedev said at a working meeting with Zurabov in Moscow on Tuesday.

Medvedev pointed out that, in addition to appointing Zurabov ambassador, he also signed a decree to appoint him as a special presidential envoy for the development of trade and economic relations with Ukraine.

“This document takes effect at the moment of its signature, and so you have both ambassadorial and representational status now. I hope these two statuses will enable you to arrange comprehensive ties with a new Ukrainian leadership, the political elites, and the public,” he said.

Now you see dear readers, there is a bit of Russian efficiency and money saving in times of crisis.  Give the Ambassador two distinct roles and authorities for the price of one.

It’s to be hoped that David 006 Miliband and Gordon McDoom don’t hear about it as there will be new official appointments dumped on poor old Leigh Turner in Kyiv……in the cause of Governmental and Whitehall cost savings.

Of course, I have a lot of free time on my hands and I work cheap……if Mr Cameron is reading this and wants a representative in the South of Ukraine……..and I can wait until June for an appointment!


Portrait of a nation?

January 20, 2010

Today at 15:07 | Interfax-Ukraine Regions Party leader Victor Yanukovych has said that if he is elected Ukraine’s president, he will not insist that his portraits hang at state-run, educational and other institutions.

He told this to journalists in Chernivtsi region onJan. 19 while commenting on his party colleague Anna Herman’s statement that icons of the Holy Virgin will definitely be displayed at schools if Yanukovych is elected the country’s president.

“People should always stick to the wishes of their souls and hearts,” Yanukovych said.

He said that if he elected the president, government representatives would not oblige anybody to hang his portraits or other symbols portraying him.

Well dear readers, be thankful for small mercies eh?

It takes me back to my time lounging around the Mess in the days of HM Forces and the obligatory portrait of The Queen being displayed.

It is almost a reason to vote for Ms Tymoshenko, as she is certainly far more pleasing to the eye than Mr Yanokvych if the presidents photograph is to be placed in every official building!

Still, I think the Playboy calendar would be far more appreciated on the walls than either President in most Ukrainian government buildings…….with the exception of schools……maybe!

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